In a report published Thursday, Craig-Hallum analyst Steve Dyer downgraded the rating on Ford Motors (NYSE: F) from Buy to Hold, and lowered the price target from $21.00 to $16.00.

In the report, Dyer commented, “Ford shares are likely dead money over the next few quarters
as the company undertakes heavy lifting that should position it very well for 2015 and beyond.” The downgrade is based on several factors including “significant warranty costs, primarily
associated with the recall of its Escape model” and “pricing (primarily in North America) has been weaker than our previous expectations.”

Dyer noted weak pricing and increased warranty greatly impacts expected fourth quarter results. The analyst lowered his Q4 EPS from $0.39 to $0.20. Dyer believes the significant warranty costs mainly hit by the recall of the Escape model and North American pricings missed expectations by the firm. International results, specifically in South America, have come in short of expectations.